“Robber baron” is a derogatory term used for some powerful nineteenth-century American businessmen. U.S. political and economic commentator Matthew Josephson popularized the term during the Great Depression in a 1934 book by the same title.

Robber baron, pejorative term for one of the powerful 19th-century American industrialists and financiers who made fortunes by monopolizing huge industries through the formation of trusts, engaging in unethical business practices, exploiting workers, and paying little heed to their customers or competition.

A term used in the 19th century in the U.S as a negative reference to business men and bankers who dominated their respective industries and amassed huge personal fortunes, typically as a direct result of pursuing various anti-competitive or unfair business practices! You just studied 5 terms!

Robber Barons. Refers to the industrialists or big business owners who gained huge profits by paying their employees extremely low wages. They also drove their competitors out of business by selling their products cheaper than it cost to produce it.

They were called robber barons because the business leaders built their fortunes by stealing from the public. They drained the country of its natural resources and persuaded public officials to interpret laws in their favor.

The first known uses of the phrase “robber baron” described feudal lords in medieval Europe who robbed travelers, often merchant ships along the Rhine River as they passed nearby. The term appeared in American newspapers in 1859. Its modern use stems from Matthew Josephson’s The Robber Barons (1934).

Legislation Aimed at Robber Barons The public’s increasingly negative view of trusts, or monopolies, transformed into legislation with the passage of the Sherman Anti-Trust Act in 1890. The law did not end the reign of robber barons, but it signaled that the era of unregulated business would be coming to an end.

It’s hard to think of Warren Buffett as a robber baron. Buffett supports the estate tax. He also owns life insurance companies and has made a lot of money by buying up family businesses. Because of the estate tax family businesses have to buy life insurance to cover the tax.

Today’s so-called robber barons or captains of industry run digital monopolies, using similar 19th century tactics to drive out competition, exploit customer’s personal information, avoid taxes and engage in highly unethical business practices.

Rockefeller was a bona fide billionaire. Critics charged that his labor practices were unfair. Employees pointed out that he could have paid his workers a fairer wage and settled for being a half-billionaire. Before his death in 1937, Rockefeller gave away nearly half of his fortune.

The Casements, Ormond Beach, Florida, United States